Air Products and Chemicals (APD) AI Stock Analysis

• Market Cap: $53.41B
• Dividend Yield: 2.92%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -0.52%
• EPS Growth: -110.29%
• Country: US
• Employees: 21,850
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.39
• Shares Outstanding: 222,591,750
• 10 Day Avg. Volume: 2,816,462
• 30 Day Avg. Volume: 1,673,169
• PEG Ratio: 1.40
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 5.05
• P/FCF Ratio: 18.66
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 6.62
• Enterprise Value/Gross Profit: 21.07
• Enterprise Value/Ebitda: 59.56
• 1Y Price Target: $287.50
• Price Target Upside: 17.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 12.99
• Revenue Forecast (FY): $12.49B

• Rating: 46 Neutral
• Price Target: $231.00 ▼(-5.63% Downside)

The overall stock score is primarily impacted by financial performance challenges, including negative profitability and cash flow issues. Technical analysis further supports a cautious outlook with bearish signals. While the earnings call provided some positive insights, such as strong EPS and dividend growth, significant challenges remain, particularly in market conditions and project execution.

Positive Factors

Strategic Partnerships

The partnership with Yara enhances Air Products' market position in low-carbon hydrogen and ammonia, leveraging Yara's distribution network for long-term growth.

Dividend Growth

Consistent dividend growth reflects strong cash generation and commitment to returning value to shareholders, indicating financial stability.

Cost Reduction Initiatives

Cost reduction initiatives enhance operational efficiency, potentially improving margins and profitability over the long term.

Negative Factors

Declining Revenue

Declining revenue and profitability can hinder growth and investment capacity, posing risks to long-term business sustainability.

Rising Debt Levels

Increased leverage can strain financial flexibility and elevate risk, impacting the company's ability to invest in growth opportunities.

Helium Market Challenges

Helium market challenges can affect revenue streams and operational performance, posing risks to financial stability and growth prospects.

Air Products and Chemicals Business Overview & Revenue Model

Company Description

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas; specialty gases; and equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries, including refining, chemical, gasification, metals, manufacturing, food and beverage, electronics, magnetic resonance imaging, energy production and refining, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. Air Products and Chemicals, Inc. has a strategic collaboration with Baker Hughes Company to develop hydrogen compression systems. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.

How the Company Makes Money

Air Products generates revenue primarily through the sale of industrial gases and related equipment. Its revenue model is based on long-term contracts and supply agreements, which provide stable cash flows. Key revenue streams include the sale of gases to customers in sectors such as refining, petrochemicals, and manufacturing, as well as the development and operation of large-scale gas production facilities. Additionally, the company benefits from strategic partnerships and joint ventures, particularly in hydrogen production and carbon capture technologies, which enhance its market position and drive growth. Factors contributing to its earnings include the increasing demand for clean energy solutions, technological advancements in gas applications, and expanding markets in emerging economies.

Air Products and Chemicals Financial Statement Overview

Summary

Air Products and Chemicals faces significant financial challenges in the TTM period, with declining revenue, negative profitability, and cash flow issues. The balance sheet remains relatively stable, but increased leverage and negative return on equity are concerns. The company needs to address operational inefficiencies and improve cash flow generation to regain financial stability and growth.

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	12.04B	12.04B	―	12.10B	12.60B	12.70B
Gross Profit	3.78B	3.78B	―	3.93B	3.77B	3.36B
EBITDA	1.34B	1.34B	―	6.49B	4.42B	4.22B
Net Income	-394.50M	-394.50M	―	3.83B	2.30B	2.26B
Balance Sheet
Total Assets	41.06B	41.06B	―	39.57B	32.00B	27.19B
Cash, Cash Equivalents and Short-Term Investments	1.86B	1.86B	―	2.98B	1.95B	3.30B
Total Debt	18.41B	18.41B	―	15.01B	11.03B	8.33B
Total Liabilities	23.71B	23.71B	―	20.90B	16.34B	13.49B
Stockholders Equity	15.02B	15.02B	―	17.04B	14.31B	13.14B
Cash Flow
Free Cash Flow	-3.77B	-3.77B	―	-3.15B	-1.42B	303.70M
Operating Cash Flow	3.26B	3.26B	―	3.65B	3.21B	3.23B
Investing Cash Flow	-7.17B	-6.58B	―	-4.92B	-5.68B	-3.86B
Financing Cash Flow	2.80B	2.21B	―	2.62B	1.37B	-1.00B

Air Products and Chemicals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 244.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Negative. The current price of 244.78 is below the 20-day moving average (MA) of 249.41, below the 50-day MA of 252.01, and below the 200-day MA of 272.57, indicating a bearish trend. The MACD of -3.70 indicates Positive momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 61.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APD.

Air Products and Chemicals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPG	67 Neutral	$23.04B	18.33	16.31%	2.69%	-12.98%	-11.34%
ECL	66 Neutral	$74.66B	37.91	21.73%	1.00%	1.38%	-2.54%
SHW	66 Neutral	$79.54B	31.33	59.94%	0.98%	0.96%	1.96%
LIN	66 Neutral	$196.79B	28.22	18.24%	1.42%	1.45%	13.21%
DD	62 Neutral	$17.29B	-22.51	-0.46%	1.72%	2.42%	-196.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
APD	46 Neutral	$53.41B	-138.04	-2.41%	2.92%	-0.52%	-110.29%

Air Products and Chemicals Corporate Events

Air Products Board Member Lisa Davis to Retire

On November 23, 2025, Lisa A. Davis announced her decision to retire from the Air Products Board of Directors following the 2026 Annual Meeting of Shareholders. Davis, who has served since 2020, will continue her roles on key committees until her retirement. Her departure comes without any disagreements with the company, and her contributions have been praised for enhancing the board’s strategic oversight.